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Sale of Rental Property

I purchased a rental property in 2002 for $107000. I sold in 2018 for $98000. I depreciated it over the years for $85000 and I still owe $60000 what is my cost basis. I also paid closing cost of $14000.

2 Replies
Level 15

Sale of Rental Property

Your cost basis is $107000 minus $85000 or $22000

Your sales proceeds are $98000 minus $14000 or $84000

Your taxable gain is $84000 minus $22000 or $62000

How much you owed when you sold the property ($60000) is not germane to your taxable gain
Level 7

Sale of Rental Property

Also, your gain will be subject to either Section 1245 and/or 1250 property.  If the rental property included things like stove, refrigerator, etc., or other types of equipment, those should be allocated a selling price less basis, and and gain/loss will be either 1245 gain, or ordinary loss.


Sale proceeds allocated to real property may be subject to Section 1250 gain.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
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